0 = -110 + 1/(1+r) x 32.1/r
How do I solve for r?
know the answer is 23.61% (.2361) Its a IRR problem for Finance.
0 = -110 + (1 / (1 + r)) * (32.1 / r)
110 = 32.1 / (r² + r)
110r² + 110r - 32.1 = 0
This is a quadratic equation which can be solved by the formula:
x1 = (-b + (sqrt (b² - 4ac))) / 2a
x2 = (-b - (sqrt (b² - 4ac))) / 2a
In the given problem the values are:
a = 110
b = 110
c = -32.1
The discriminant D = b² - 4ac evaluates to:
D = 110² - 4 * 110 * -32.1 = 26224
If D > 0 , there are 2 solutions in R (set of real numbers).
If D = 0 , there is 1 solution in R (set of real numbers).
If D < 0 , there are 0 solutions in R (set of real numbers).
The two solutions are:
x1 = (-110 + (sqrt (26224))) / 220
x2 = (-110 - (sqrt (26224))) / 220
x1 = 0.2361
x2 = -1.2361
I have not the slightest idea, what IRR finance problems are, so you have to decide on your own, whether the negative solution is nonsensical in this context or not.
On quadratic equations consult e. g. :
https://en.wikipedia.org/wiki/Quadratic_formula